Since President Donald Trump’s so-called “Liberation Day” in April—when he announced sweeping tariffs on international imports—those trade policies have shifted several times.
China, America’s largest source of imports, is currently subject to a 30% tariff, down from a previous high of 145%. Canada, Mexico, and other countries also face tariffs.
Tariffs are essentially taxes, and because those costs often get passed down from importers to businesses — and businesses to customers — small business owners are worried about the impact they may have.
Kristen Corral co-owns Tacotarian, a Las Vegas-based vegan Mexican restaurant. She said most of their packaging and utensils are sourced from China. “Paper goods, cups, napkins, plates, silverware, straw, all of those are things that we constantly get on an everyday basis. Their prices have gone up,” Corral said.
Another business owner, Mike Schoenbaechler of Vegas Valley Winery in Henderson, said his business has also felt an impact.
“Our biggest packaging is wine bottles,” Schoenbaechler said. “They come through China and Mexico. With all of the ups and downs of the changing of the tariffs, it’s really difficult to foresee what the bottles are going to cost in six months, or even three weeks.”
In response to the rising prices, Schoenbaechler and Corral said, their businesses are absorbing the impact — for now — instead of passing costs on to customers. Even so, Tacotarian has had to cut back on the number of shifts given to employees.
“We have thinned out,” Corral said. “We're working with the minimum staff that we can work with to meet customer service standards and high quality products.”
When it comes to sourcing materials domestically to avoid steep import costs, Schoenbaechler said, the reality is more complicated.
“There are very few wine bottle manufacturers in the U.S., and the ones that do [exist here] are being given to the larger wineries,” he explained. “Those wineries have purchasing power, since they’re buying millions of bottles. We're such a small player, so we don't have that.”
Guests: Kristen Corral, co-founder, Tacotarian; Mike Schoenbaechler, co-owner, Vegas Valley Winery
